Declaring Bankruptcy While Living with Your Parents

Posted on July 9, 2012 at 12:06pm by

Ever considered the implications of declaring yourself bankrupt if you are living at home with your parents? We hope you haven’t had to. However, if you are living at home and you are in a position where you have debt that you are unable to repay, bankruptcy is one of the options you can consider.

Because you are not personally a home owner, you have no property which would be put at risk by your declaring bankruptcy. Depending on your financial situation, you may be asked to make payments towards your debts. However these will last for a maximum of three years.

As such bankruptcy will mean that you are debt free far sooner than if you carry out an Individual Voluntary Arrangement (IVA) where your payments would last for 5 years or a Debt Management Plan where you have to keep paying perhaps for many more years until 100% of your debts are paid back.



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